TxDOT suspends tuition program after questions

AUSTIN - The Texas Department of Transportation has decided to temporarily stop paying millions of dollars for the college tuition of employees amid questions about whether some of the payments violate state law.

Agency chief of staff Rich McMonagle announced the move in an email to workers Monday night, saying the central administration was considering revisions to its Tuition Assistance Program.

"It is our intent that the program will restart after revisions with enough time to minimize disruptions to participants," McMonagle wrote in the email, which was obtained by the Houston Chronicle.

The temporary suspension came a day after the Chronicle reported that there is little accountability or oversight over tuition payments for state workers across Texas government, which have totaled at least $30 million in taxpayer money over the past two decades.

The Department of Transportation spent the most of any department on employee tuition, doling out $13 million since 1993. It has poured more than half a million dollars into a category of education programs it labels as "non-job related," according to documents obtained in records requests, even though state rules require that tuition payments only go to cover job-related education.

There is no timetable for the department's review of its tuition payments, said Veronica Beyer, a spokeswoman.

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The review marks the second time this year that a Texas state agency has reconsidered its policy for tuition payments in response to revelations about how they may benefit politically connected and otherwise favored employees.

The Texas Health and Human Services Commission in January started working on a new policy after the Chronicle and Texas Tribune reported that two former political aides to Executive Commissioner Kyle Janek had received a combined $144,000 in graduate school tuition payments shortly after being hired to high-paying jobs. The payments were issued before any classes began, a controversial method because it does not make employees prove they have passed courses before money is spent.

Both of the employees eventually agreed to return the money, and one of them, former deputy chief of staff Casey Haney, resigned.

The transportation department has spent much more on tuition than the health commission, with about 850 employees receiving payments that averaged $12,595.

The Chronicle investigation found that the agency had potentially violated state law by issuing all payments up front and spending more than $500,000 on the programs categorized as not job-related. Despite spending $13 million on tuition payments, the agency's policy governing the program is only 526 words.

Beyer, the department spokeswoman, previously defended the program, noting state rules allow for payments fewer than six weeks before classses begin and for spending on education related to "prospective duties" of workers.

Two bills have been introduced in the Legislature to address transparency issues related to tuition spending: House Bill 3337, sponsored by Republican Travis Clardy of Nacogdoches, would ban up-front payments and require agency directors to approve tuition payments and post policies online. Senate Bill 1638, from Democrat Judith Zaffirini of Laredo, would make agencies publicly report payments.

Neither has gotten a hearing.

It is unclear what reforms are being considered by the Department of Transportation. Beyer said the agency is looking at "all aspects of the program to ensure we are providing the best value to the state."

At the health commission, a spokeswoman said officials are planning to create a committee to review requests, make employees cover half of all costs above $5,000 annually, and make workers stay at the agency for a specific amount of time after they have completed their graduate work.